TCS posts net profit of Rs 8,105 crore in Q3

NEW DELHI: The country’s largest software exporter Tata Consultancy Services (TCS) on Thursday posted a net profit of Rs 8,105 crore in the third quarter against Rs 7,901 crore posted in Q2. In a filing to the exchanges, the company said its income from operations rose to Rs 37,338 crore in Q3 from Rs 36,854 crore in the September quarter.

On a year-on-year basis, TCS reported a record 24.1 per cent rise in its net income for the December quarter. Digital accounted for 30.1 per cent of the revenues, registering year-on-year growth of 52.7 per cent.

“The board of directors at its meeting held on January 10, 2019, has declared an interim dividend of Rs 4 per equity share,” TCS added.

The IT major further stated that it has “allotted 191,42,87,591 equity shares as fully paid up bonus shares by capitalisation of profits transferred from retained earnings amounting to Rs 86 crore and capital redemption reserve amounting to Rs 106 crore, pursuant to an ordinary resolution passed after taking the consent of shareholders through postal ballot.”

The company added that the earnings per share and dividend per share of previous periods have been adjusted for bonus shares issued in current period.

Commenting on the Q3 numbers, Rajesh Gopinathan, TCS chief executive and managing director, said: “We are wrapping up 2018 with a strong revenue growth of 12.1% in the December quarter, which is the highest in 14 quarters, with continued growth acceleration in key verticals and across all geographies. The strong client metrics, industry leading growth in digital services, a very strong order book and deal pipeline are all validations that customers recognize our differentiated capabilities and are picking us for their growth and transformation programs.”

During the October-December 2018 quarter, TCS added 6,827 people (net), taking the overall employee strength to 4,17,929 employees. Attrition rate was at 11.2 per cent on last twelve months (LTM) basis.

TCS shares closed fractionally higher compared with the broader market which ended down 0.31 per cent. The Q3 figures were declared after the market hours.